Kellogg buys 50% stake in Multipro Enterprises Limited
United States based World largest cereal maker, Kellogg, is buying up a 50% stake in Multipro Enterprises Limited, a subsidiary of the Tolaram Group. Multipro Enterprises Limited is a food sales and distribution company that has largely accounted for the distribution success of Indomie Noodles In Nigeria,
The deal, according to Kellogg, is to help the company develop and distribute its snacks and breakfast lines for the West African market. Kellogg will also have access to Multipro’s distribution network in Ghana, Nigeria, the Democratic Republic of Congo, Ivory Coast, Cameroon and Ethiopia.
According to Kellogg, which also acquired a majority stake in Bisco Misr, an Egyptian biscuit company for $125 million in January, costs associated with the Tolaram deal may lead to lower third-quarter earnings by 1 cent per share.
Tolaram Group owns 49 percent of Dufil Prima Foods Plc, the makers of the number one noodles in the market, Indomie noodles.
